Tesla Motors, Inc. (TSLA) shares are trading lower by more than 5 percent in early action as the stock breaks down to a fresh multi-month low below the $180 level. Shares have traded downwards for the better part of the last 12 months, and are seeing further deterioration this morning on above average volume. Tesla shares closed at $182.78 at the end of Tuesday’s trading session, and are currently printing a six-month loss of 33.22% and year-to-date loss of around 24%.
Tesla this morning was initiated with a “Sell” at Berenberg. In a note to clients, the firm’s analysts said the Model 3 should be a strong product, but expect the margins will disappoint. This is the second negative analyst note on Tesla in the past couple of days, saying they see signs that the electric car maker will face tougher growth prospects in the future. On Monday, Morgan Stanley’s (MS) Adam Jonas lowered his price target on the name, citing lower “volume expectations for Model X and Model 3, a lower valuation for Tesla Energy, and accelerating competition in the mobility business”.
Jonas cut his price target on the stock by 26% to $333 a share.
At last check, TSLA was down $10.45 at $172.33, moving within a 52-week range of $170.59 to $286.65. The stock, valued at $22.59 billion, opened at $183.59. The Palo Alto, California-based company, currently valued at $22.37 billion, has a median Street price target of $280.00 with a high target of $355.00.
Tesla Motors is down 13.35% year-over-year, compared with a 6.78% loss in the S&P 500.